There are certain corners of the market that I believe investors can afford to ignore for a quarter, a year, or even an entire market cycle. This is not one of them. I have been bullish on this particular area of the market for years, and my conviction has only grown.
Regardless of what happens with the economy, interest rates, or the next major market correction, I believe this industry is on a path toward becoming one of the most strategically important areas of the U.S. economy over the coming decade. And it’s not really a sector I’ve written about too much over the last year or two. I recently included it in my “Bear Market Shopping List” and my late July article “If I Had To Only Own 11 ETFs Forever…”.
Today I want to make clear my thoughts on it.
What makes the opportunity interesting today is that I also don’t think the market fully appreciates where this sector is heading. While AI, semiconductors and the Magnificent Seven have commanded enormous investor attention, this particular corner of the market has lagged some of those trades, despite not being too far off from those companies.
Meanwhile, a major development out of Washington this week appears to move directly toward a prediction I have been making for years about the eventual role these companies could play going forward.
If I’m right about where this is heading, the implications could be meaningful, and any major market selloff could give investors a particularly interesting opportunity to gain exposure.
